Thursday, August 4, 2011

Oh my God - David Cameron, the UK’s premier, thinks the UK government doesn’t have money to “kick start” the UK economy.

On 26th July, The Times had an article entitled “No money for a kickstart, says Cameron”. The first paragraph reads, “David Cameron warned yesterday that the Government lacks the economic firepower to boost growth as fears mounted over the global recovery. He went on to claim that “the public finances were too strained to allow the Government the possibility of injecting extra life into the troubled economy.”

Inflation might be a constraint on growth, but the idea that the government of a monetarily sovereign country can be short of money is pure nonsense.

In the unlikely event of anyone being interested in Cameron’s ideas on economics, this should be an inspiring read: it’s an article in the Independent newspaper entitled “Why are we silent as Cameron preaches voodoo economics?”